A trading industry that takes advantage of price differences in the market to make profits from buying and selling.

Speculation can be divided into two major fields: real economy speculation and virtual economy speculation. Among them, securities speculation has the richest connotation and the most complex principles. People's daily purchase of lottery tickets, stocks, etc., and the trading choices they make based on their own resources using the information they obtain, are all a type of speculation. The purpose of speculation is directly to obtain price difference profits.

The main feature of speculative trading is to amplify the leverage of funds to obtain a greater return on investment. The disadvantage is that once the market operates in the opposite direction, the losses will be inestimable.

Extended information

According to the length of time the futures contract is held, speculation can be divided into three categories:

1. Long-term speculators, such traders After buying or selling a futures contract, the contract is usually held for days, weeks or even months, and the contract is hedged only when the price is favorable;

2. Short-term traders generally For futures contract trading on the same day or in a certain trading session, positions cannot be held overnight;

3. Those who chase small profits, also known as "hat grabbers", their skill is to use small changes in prices to trade. To obtain small profits, they can do multiple rounds of buying and selling transactions in one day.

Baidu Encyclopedia - Speculation

Baidu Encyclopedia - Speculation